Wunderlich Securities analyst Theodore O'Neill this morning reduced his rating on A123 to Sell from Hold, with a new target of 50 cents, down from $3. And the core reason is Fisker.

"Fisker has had its Department of Energy funding suspended and because it has become part of an intense political debate, it may never be restored," the analyst writes in a research note. "Given this development and its likely impact, which will be to lower production of the Karma [Fisker's initial model], we've adjusted our estimates once again. On the one hand, fewer sales means a lower loss. On the other hand it throws 2013 estimates into disarray because Fisker has started laying off employees at its plant in Delaware and this would have been a much larger opportunity for A123 Systems."

With the loss of federal funding, the analyst notes, "Fisker will be forced to allocate its cash sparingly and we believe this will cause it to lower Karma production expectations further as well as lay off workers." He says that Fisker may already have more than 2,000 finished battery packs on hand - and he notes that the battery pack is the car's single most expensive component in the car. "We can't be sure when it will need more or if it will have the money to pay for it. In either case, we have to lower our revenue forecast."

And as O'Neill points out, Fisker could become a Solyndra-style political football. He says that there is the possibility that denying funding for Fisker could create "two Solyndras for the price of one."

"By our estimates, if the Republicans want to create another Solyndra-style bankruptcy or two, all they have to do is permanently delay any further funding of Fisker," he writes. "In that case, we feel that without a significant bailout from the public equity markets, it would cripple Fisker and create a doomsday for AONE."

The analyst adds that without Fisker, A123 has "no repeatable sales prospects of any significant size."

And he adds that A123's balance sheet looking like "a looming disaster." He contends that the company is going to bleed $250 million in additional capital in 2013 and another $100 million in 2014. "

O'Neill is projecting losses for A123 of $173 million this year, $176 million next year and $163 million in 2014.